Craiova-based locomotive producer Softronic and the Hungarian group LAC Holding have signed a joint-venture to build locomotives in Hungary.

The Hungarian Government will support locomotive production in Hungary, said Bela Glattfelder, State Secretary of the Hungarian Ministry of Economy, reports local Ziarul Fnanciar.

The joint venture will create 250 new jobs in the long-term and 50 in the short term.

The two companies announced in December last year their plan to start a joint venture for building a locomotive factory. Softronic will hold a 51% share package while LAC Holding will have a 41% stake.

They should build the plant by the end of 2016 and produce the first locomotive in 2016.

editor@romania-insider.com